$8M subsidized housing sale is one of Maine's largest in recent years
Courtesy / The Boulos Co.
The buyer’s plan is to renovate units using a financing package through the Maine Housing Authority. The complex dates back to 1975.
The $8.03 million sale of a 120-unit housing project in Augusta is one of Maine's largest deals for a subsidized multifamily property in years.
Midland Capital Partners, a developer and operator of subsidized housing in Maine, bought the property, at 82 Glenridge Drive, from Silver Street Partners.
Tony McDonald and Nick Lucas of the Boulos Co. represented the seller in the deal.
“There is significant demand for affordable housing in the Augusta market, where there is an aging housing stock, and Midland Capital Partners recognized the need,” Lucas said in a news release.
The complex, comprising 1 million square feet on 13.2 acres, was built in 1975 and renovated in 2004.
McDonald and Lucas said the sale underscores both the market's strength and weakness. Demand remains solid for affordable housing, they said, but comes at a time when new development of space faces multiple hurdles throughout Maine.
“Land costs and low-density zoning are the biggest issues,” said McDonald. “With program caps on rental rates and construction costs non-negotiable, the key is keeping the cost of acquisition and development down.”
McDonald said specialized financing and use of low-income housing tax credits are key to making new-development projects viable.
Midland’s plan is to renovate each unit at the complex using a financing package through Maine Housing Authority, converting some market-rate units to subsidized units.
Boulos conducted a nationwide search for buyers that resulted in eight significant offers.
In the end, Midland was selected based on its experience in acquiring and operating low-income housing projects in the state.
“Subsidized housing projects ultimately help improve housing availability for low- and moderate- income citizens,” said McDonald. “But it takes experienced subsidized housing developers, such as Midland, partnering with state and federal agencies, such as Maine Housing Authority and HUD, who provide the requisite specialized financing to help make these projects feasible.”
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